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The Mayor of London’s Responsible Procurement Report

Mayor of London’s Responsible Procurement Report

Mayor of London’s Responsible Procurement ReportFebruary 2008


2

Greater London Authority February 2008

Published by Greater London Authority City Hall The Queen’s Walk London SE1 2AA www.london.gov.uk enquiries 020 7983 4100 minicom 020 7983 4458

ISBN 978 1 84781 122 6

Cover photograph © Adam Hinton

This document is printed on Revive 100 paper: 100 per cent recycled fibre content from post consumer reclaimed material; FSC and NAPM certified.

copyright


3contents

Foreword by the Mayor of London 5

Foreword by Director of Equalities & Policing 6

Executive summary 8

1 Introduction 11

2 The GLA group 15

3 London: challenge and opportunity 21

4 The GLA group’s supplier diversity programme 25

5 The GLA group achieving social objectives through procurement 35

6 The GLA group promoting greater environmental sustainability through procurement 41

7 The GLA group’s ethical sourcing practices 47

8 The next steps for responsible procurement 49

Glossary 52

Contact details and links to related websites 53

References 56

I believe that there is a significant opportunity to improve the quality of life of all Londoners through the way in which we buy our goods, works and services.

© Adam Hinton

5Mayor of London’s Responsible Procurement Report

Foreword by the Mayor of London

I believe that there is a significant opportunity to improve the quality of life of all Londoners through the way in which we buy our goods, works and services.

Responsible procurement is buying in a socially and environmentally responsible way, which delivers real value for money and improvements to quality of life. I am committed to ensuring that the GLA group – which invests over £3 billion each year in goods, works and services – uses its procurement to London’s best advantage.

For this reason I have a Responsible Procurement Policy which has been agreed and implemented across the Greater London Authority (GLA), Transport for London (TfL), the London Development Agency (LDA), London Fire & Emergency Planning Authority (LFEPA) and the Metropolitan Police Authority (MPA) / Service (MPS), collectively known as the GLA group.

I have also worked with the Olympic agencies to ensure procurement for the 2012 Olympic Games and Paralympic Games takes these principles into account, and will be taking the same approach to the construction of Crossrail.

Implementing responsible procurement is a significant long-term commitment, and requires changes in behaviour from all the hundreds of individuals in the GLA group who buy goods and services. All parts of the GLA group have made a commitment to achieve these changes.

This first responsible procurement report outlines our activities to date and highlights our key successes including the following:

• The GLA group implementing the London Living Wage in contracts worth £5.5m per annum, leading directly to almost 400 staff having their wages lifted to at least match this level. This figure will go on increasing as the Living Wage is rolled out in new contracts.

• Transport for London promoting responsible procurement through £2bn worth of contracts.

• The Metropolitan Police Service awarding their £60m facilities management contract on the basis of contractor sustainable facilities and waste management practices.

5

© L

iane

Har

ris


• Recognition of the London Fire and Emergency Planning Authority as a leader on environmentally sustainable procurement through a number of awards including the City of London Corporation’s Sustainable City Awards in 2006.

• The London Development Agency delivering over 25 per cent of its procurement spend in 2006/7 with diverse suppliers.

I am confident that by sharing our positive achievements in implementing this policy, through this report and on our responsible procurement website (www.london.gov.uk/rp), we will encourage others – both buyers and suppliers – to join with us in driving forward this approach across procurement in London so increasing numbers of Londoners experience the benefits.

Ken Livingstone Mayor of London

The Mayor of London has made clear his commitment to promoting London’s economic, social and environmental development. He has challenged the GLA group to ensure that its procurement gives proper weight to the social and environmental implications for Londoners, and is also promoting this approach with other agencies.

London’s uniquely diverse population, and the current inequalities in different communities’ access to the capital’s economic success, mean it is vital that procurement promotes equality in both employment and supplier diversity.

6

Foreword by Director of Equalities and Policing


Equally, London faces critical environmental challenges, particularly in relation to climate change and waste management, and we simply cannot afford to ignore these issues in the way we purchase goods and services.

Our role is to lead by example. We are mainstreaming responsible procurement across the GLA group and are seeking to encourage others to join us in adopting these processes and practices. I have engaged with government and other partners to influence the procurement agenda across the public sector, and am encouraged by the genuine interest I have found. The Mayor’s initiative complements the government’s commitment that the UK will be a leader in the EU in taking a responsible approach to procurement by 2009. We continue to press for a clearer public duty for public agencies to promote equality within procurement as part of the changes the government is making in the Discrimination Law Review, which will help deliver the government’s ambition.

A particular focus for the GLA group has been to encourage a diverse base of suppliers. We are engaging with diverse businesses and encouraging our contractors to do the same. Our aim is for under-represented groups to be given the opportunity to compete successfully for a much increased share of the £3bn annual spend of the GLA group.

This report sets out a range of case studies demonstrating our progress on this agenda, and confirms our commitment to continue to lead by example

Establishing a group Central Responsible Procurement Team in September 2007 was a key step in increasing the GLA group’s capabilities. This team is helping to implement policy and drive progress, and supports the group in working towards achieving world-class responsible procurement across the group over the coming years.

Alongside the GLA group’s development of its own responsible procurement, the Mayor will continue to champion this approach across the public and private sectors in London so its full benefits can be realised.

Lee Jasper Director of Equalities and Policing

7


This is the first GLA group Responsible Procurement Report. The report highlights the group’s progress in implementing the Mayor’s Responsible Procurement Policy, which was adopted in June 2006.

The Mayor’s vision is for London to be an exemplary, sustainable, world city based on three interlocking themes:

• strong and diverse economic growth; • social inclusivity to allow all Londoners to share in London’s future

success and • fundamental improvements in environmental management and use of

resources.

The Mayor developed his Responsible Procurement Policy in order to ensure that the GLA group’s annual spend of over £3 billion is spent in accordance with his vision. The GLA group has defined responsible procurement as: ‘the purchase of goods, works and services in a socially and environmentally responsible way that delivers value for money and benefits to the contracting authority and to London’.

The Mayor’s Responsible Procurement Policy complements the government’s Sustainable Development Strategy of March 2005, which recognises the role that procurement can have in delivering the sustainable development agenda, and sets the challenging target of the UK becoming one of the leaders in the EU on sustainable procurement by 2009.

The GLA group is made up of:

• The Greater London Authority• Transport for London• The London Development Agency• London Fire and Emergency Planning Authority• The Metropolitan Police Authority and Police Service.

Each of these organisations is responsible for implementing the Responsible Procurement Policy within its own organisation. A Steering Group made up of senior director level representatives from each organisation monitors progress. The Steering Group meets quarterly and is chaired by Lee Jasper, the Mayor’s Director for Equalities and Policing. A small pan-GLA team, the Central Responsible Procurement Team, which was established in September 2007, supports the Steering Group.

Executive Summary

8


The Responsible Procurement Policy consists of seven themes:

• encouraging a diverse base of suppliers• promoting fair employment practices• promoting workforce welfare• addressing strategic labour needs and enabling training• community benefits• ethical sourcing practices; and • promoting greater environmental sustainability.

The policy built on earlier work; in particular the Mayor of London’s Green Procurement Code, which is a free support service for London-based organisations committed to reducing their environmental impact through responsible purchasing. There has been a strong recent focus on delivering on the first theme, encouraging supplier diversity, to ensure that the GLA group spend reflects the diversity of Londoners. However, this report highlights outcomes from implementing the policy across all of the themes. Implementing responsible procurement has brought about tangible benefits with real progress ranging from quick wins, such as recycling improvements in smaller day-to-day procurement, to key projects and programmes including:

• TfL’s groundbreaking inclusion of supplier diversity requirements within the £500 million contract for the main works of the East London Line extension. The contract is helping ensure fair opportunities for smaller suppliers, particularly those led by minority ethnic groups and by women and disabled people, in securing subcontracted business,

• Implementation of the London Living Wage in a number of support services contracts totalling £5.5m across the GLA group, leading to almost 400 staff realising the associated benefits,

• A range of London Development Agency (LDA) projects to support small and medium sized enterprises (SMEs), particularly those with diverse ownership, in being more competitive. These include the London Value Chain Programme and the Supply London Programme,

• Recent enhancements to the Mayor of London’s Green Procurement Code, which includes over 500 members, committed to improving environmental standards in their purchasing,

• Work to ensure the GLA group and its contractors are sourcing timber from sustainably managed forests.

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This report discusses in detail the policy’s social and environmental objectives, and ethical sourcing. It outlines the ways in which the GLA group proposes to take responsible procurement forward.

© LDA - Nick Philips


The content of this reportThis report provides an overview of the progress of the GLA group in implementing the Mayor’s Responsible Procurement Policy. It explains the policy, summarises the roles of the organisations that make up the GLA group, and places the policy within the context of London’s diversity and the challenges the city faces. It looks at how responsible procurement is structured within the GLA group; at how it has been delivered over the past year, and at how the group supports its suppliers in understanding and responding to the policy.

Case studies give examples of how the policy works in practice and illustrate the complexity of procurement throughout the GLA group. If you would like further information on implementing responsible procurement or on the case studies, please go to our responsible procurement website: www.london.gov.uk/rp

The Mayor’s visionThe Mayor’s vision is for London to be an exemplary, sustainable, world city, based on three interlocking themes:

• strong and diverse economic growth• social inclusivity to allow all Londoners to share in London’s future

success• fundamental improvements in environmental management and use of

resources.

The Mayor leads the Greater London Authority (GLA) group1, which aims to help deliver this vision. The GLA group uses its purchasing power to support social and environmental objectives and to ensure that true value for money is achieved both for the GLA group and for London and all its citizens.

1 Introduction

11


12

‘We will strive to ensure that decisions taken by members

of the GLA group on the procurement of resources and/

or in relation to the provision of grant funding or financial

assistance to any organisation or individual are undertaken

in line with our sustainability commitments, and wherever

possible commercial relationships are formed and

nurtured with partnering and contracting organisations

who share our values on sustainability.’

The GLA group’s commitment

© L

FEPA


The GLA group’s responsible procurement policyThe GLA group has defined ‘responsible procurement’ as the purchase of goods, works and services in a socially and environmentally responsible way that delivers value for money and benefits to the contracting authority and to London.

In June 2006 the GLA group adopted a Responsible Procurement Policy to support the delivery of the Mayor’s vision for London.2

The policy sets out the GLA group’s commitment to adopt responsible procurement practices as follows:

‘We will strive to ensure that decisions taken by members of the GLA group on the procurement of resources and/or in relation to the provision of grant funding or financial assistance to any organisation or individual are undertaken in line with our sustainability commitments, and wherever possible commercial relationships are formed and nurtured with partnering and contracting organisations who share our values on sustainability.’

The policy defines seven themes of responsible procurement. These are:

• encouraging a diverse base of suppliers• promoting fair employment practices (including the London Living

Wage)• promoting workforce welfare • meeting strategic labour needs and enabling training opportunities • community benefits• ethical sourcing practices• promoting greater environmental sustainability.

These seven themes are the touchstones by which the success of the GLA group’s Responsible Procurement Policy can be measured.

13

This section summarises the role and procurement function of each member of the GLA group and outlines how responsible procurement is structured within the group.

© Adam Hinton


2 The GLA group

The GLA group is made up of six bodies, of varying sizes and with different structures, accountability and operational focus. However, as a group all members are working together to use procurement to address the social, environmental and economic challenges of London.

The Greater London Authority (GLA)The Greater London Authority (GLA) is a unique form of regional government, made up of a Mayor and an Assembly. It is a small, strategic authority providing a vision and voice for London.

London’s Mayor is an executive Mayor, with strategic powers over a wide range of services in London. The Mayor works with others to set out and deliver policies on a wide range of areas and in particular on:

• transport• policing• fire and emergency planning• economic development• urban regeneration and the environment• arts and culture• planning and development.

These policies contribute to achieving sustainable development, improvements to the health of Londoners, and greater equality of opportunity.

The GLA’s direct annual spend on procurement is £30m, of which the greater part is spent on supporting the development and delivery of the Mayor’s strategies.

‘The culture we are creating across the GLA is that sustainability, including responsible procurement, is an integral part of our work. This is demonstrated from the time staff enter the GLA, as sustainability is embedded in the induction process.’

Janet Worth, Executive Director of Corporate Services, GLA

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Transport for London (TfL)Transport for London (TfL) manages most of London’s transport system, taking account of London’s economic, social and environmental needs, and helps deliver the Mayor’s Transport Strategy. TfL’s direct annual procurement spend in 2006/07 was £1.625bn, of which £151.8m was spent with SMEs, on a wide range of goods and services ranging from traffic technology and systems to highway maintenance, uniforms and clothing.

‘Responsible procurement is a new and exciting area of development that sees social, environmental and economic issues addressed by the procurement function. This is consistent with the National Procurement Task Force’s Action Plan.

‘TfL has implemented responsible procurement in contracts with a combined value of £2bn, and aims to ensure that the Responsible Procurement Policy is regarded as an integral part of the specification of the goods, works or services that it buys.

‘It is important that we partner organisations that share our view on responsible procurement and on sustainability in order to further develop the agenda. By doing so, we not only help support the vibrancy of local communities, we also expose TfL to a wider range of innovative solutions, developed with future generations in mind.’

Valerie Todd, Managing Director, Group Services, Transport for London

The London Development Agency (LDA)The LDA is the Mayor’s agency for supporting sustainable economic development. It is one of the nine Regional Development Agencies, set up by government to transform England’s regions through sustainable economic development. It spends £550m a year, most of which goes on grant funding and land acquisition.

‘The LDA is committed to ensuring that London not only retains its position as an immensely successful modern world city, but that it serves its communities by creating an excellent place to work and live.

‘We actively seek to integrate environmental considerations into all stages of our purchasing process and continue to work closely with the GLA and business on the Mayor’s responsible procurement agenda. We work

16


responsively to build on the leadership of many forward-looking businesses to use procurement in delivering social as well as commercial outcomes.

‘Responsible procurement lies at the core of all of our initiatives and programmes, both internally through our strategic decision making, and with our external partners and stakeholders through our programmes and projects.

‘We are steadfast in our commitment to drive forward responsible procurement and to respond effectively to the changing global, social, environmental and economic landscape that lies ahead.’

Manny Lewis, Chief Executive of the LDA

London Fire and Emergency Planning Authority (LFEPA)LFEPA provides community fire safety, and fire and rescue emergency response services, together with emergency planning. Its principal aim is to make London a safer city, by minimising the risks and the social and economic costs of fire and other hazards.

It is the third largest fire-fighting organisation in the world, protecting people and property from fire within the 1,587 square kilometres of Greater London, which has a resident population of 7.5 million, increasing by another 500,000 people during working hours.

LFEPA direct procurement spend is £86m a year, which includes fire-fighting operational equipment and personal protective equipment (PPE).

‘LFEPA is committed at all levels to delivering across the key responsible procurement strands of supplier diversity, fair employment practices and environmental improvement. We are proud to have won the Corporation of London’s Sustainable Procurement Award and the overall Sustainable City Award, which recognised our comprehensive approach – from the London Living Wage to our sustainable investment fund. We are already at 14 per cent below 1990 levels for CO

2 emissions from our buildings

alone and look forward to working with partners in the GLA and outside to keep improving on that performance.’

Barbara Riddell, Director of Resources, LFEPA

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The Metropolitan Police Authority (MPA) and Service (MPS)The aim of the MPA, as the statutory body overseeing the work of the MPS, is to secure an effective, efficient and fair police service for London.

The MPS works with the public and with its partners in the community to execute its vision to make London the safest major city in the world. The MPS is the UK’s largest police force and is London’s biggest employer with over 50,000 staff.

A central Procurement Services Team is responsible for buying the goods and services needed to support the diverse and complex requirements of the MPS.

The MPS annual direct spend on procurement is around £850m, which buys a wide range of goods and services including operational vehicles and equipment.

‘MPA/MPS is fully committed to promoting responsible procurement as a key element in achieving our goals in making London the safest major city in the world. We fully recognise the benefits that can be gained from promoting responsible procurement, not least the social and cultural aspects but increasingly also the economic benefits.’

Catherine Crawford, Chief Executive of the MPA

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Structuring responsible procurement within the GLA groupThe brief outline above makes clear the wide range of roles undertaken by the bodies that make up the GLA group. However, they have a shared commitment to carrying forward responsible procurement. The way in which the group’s members have come together to steer the implementation of the policy and to share good practice has contributed to its success.

The approach of the GLA group has been for each member to be responsible for its own operational implementation of the Responsible Procurement Policy. There is a pan-organisation Steering Group to ensure consistency and drive continuous improvement, supported by a working group to share good practice and lessons learnt.

The Steering Group is chaired by Lee Jasper, the Mayor’s Director of Equalities and Policing, and is made up of senior director level representatives from across the group. The working group is made up of heads of procurement from each member of the group.

To support this shared approach, the Steering Group has set up a small pan-GLA team to help coordinate the responsible procurement agenda. This team has the following aim:

‘To develop, promote, collaborate on and support the practical implementation of policies and work programmes across the GLA group procurement functions, to support the achievement of world class responsible procurement (RP).’

Sections 4 to 7 of the report provide some selected illustrations of how the GLA group is using procurement to drive positive change in the business community and for Londoners. But first, Section 3 looks at the context – the diversity of London and its environmental challenges – in which all this is taking place.

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Greater London is the largest and most populated city in the European Union, with a population of more than seven and a half million – 12 per cent of the UK’s total.

© visitlondonimages/britainonview/McCormick-McAdam


Greater London is the largest and most populated city in the European Union, with a population of more than seven and a half million3 – 12 per cent of the UK’s total. Along with New York and Tokyo, it is a ‘world city’ and provides employment to four million people. It is an internationally recognised centre for finance and business, design, media, fashion, entertainment and a growing internet sector.

London accounts for nearly a fifth of the UK’s economic output measured as gross value added (GVA), with the financial and business sectors contributing nearly half of London’s GVA. While London’s household income per head is around 20 per cent higher than the UK average, the city also contains some of the most economically deprived areas in the country (and has the lowest employment rate/highest child poverty rate of any UK region or country).4

The diversity of London’s peopleLondon’s population is uniquely diverse; 33 per cent of Londoners, nearly two and a half million people,5 are from minority ethnic groups.

It is projected that by 2026 London’s population will have increased by over 1.1 million people, and that over 84 per cent5 of this increase will come from black, Asian and minority ethnic (BAME) groups.

The city’s population encompasses 300 languages6 and numerous faith groups.

London’s diversity is further illustrated by the following figures:

• Women make up 44 per cent of London’s Labour force 7

• Disabled Londoners represent 17 per cent – around 800,000 people – of London’s working age population.7

• London is home to the largest lesbian and gay population of any city in Europe, with over six per cent of a lesbian, bisexual or trans-person (LGBT) background.8

3 London: challenge and opportunity

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© visitlondonimages/britainonview/McCormick-McAdam


Diverse businesses within LondonThere are approximately 39,000 Asian-owned businesses in London, about 21 per cent of all the capital’s businesses.9

There are over 10,000 black-owned businesses employing one or more staff, four per cent of all businesses.9 Black-owned businesses have a total turnover of almost £4.5 billion and provide around 70,000 jobs (three per cent of total employee jobs).

There is a higher proportion of unemployed women in London than in any other region7, and just 16 per cent of businesses in London are female-owned.9

Disabled people own only one per cent of businesses in London, which compares with the 17 per cent of London’s working age population that are disabled.9

There are 2,600 businesses in London that are LGBT-owned. This is only one per cent of all London businesses.10

Deprivation in LondonPolarisation between rich and poor is far more marked in London than elsewhere. Furthermore, poverty rates are particularly high for some minority ethnic groups. Half the entire minority ethnic population of Great Britain is living in the capital11 and income inequality in London has a strong ethnic dimension.

Deprivation is also geographically concentrated, with Inner London registering rates of income poverty for children, working age adults and pensioners, which are far higher than in any region of Great Britain12.

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Environmental issues and LondonThe scientific evidence for climate change is now overwhelming: it is a serious global threat and demands an urgent global response.

The UK is the world’s eighth largest emitter of carbon dioxide (CO2).

London is responsible for eight per cent of UK emissions, producing 44 million tonnes of CO

2 each year.

Given London’s forecast economic and population growth, without policy intervention London’s carbon emissions would be projected to increase by 15 per cent to 51 million tonnes by 202513. However, the Mayor’s Climate Change Action Plan sets out a programme of action to reduce London’s CO

2 emissions by 60 per cent below 1990 levels by 2025.

London produces around 18 million tonnes of waste every year. This is forecast to rise to 23.6 million tonnes in 2020. London currently recycles just over half this waste, a performance that requires major improvement.

Economic investment in LondonThe GLA group spends over £3 billion each year on goods, works and services. The scale of this expenditure means that there is significant potential to have a direct socio-economic and environmental impact in London, and to influence wider procurement practice.

Broadening our supplier base to embrace London’s diversity will benefit not only diverse owned businesses but also the GLA group and Londoners.

© visitlondonimages/britainonview


Supplier diversity is a broad concept for the GLA group. It means including suppliers who can find it difficult to break into the systems that large organisations put in place to buy goods and services. Bigger businesses generally have the skills and experience to deal with public procurement systems; small businesses often do not. This has traditionally meant that SMEs have not had the same opportunities as larger companies.

The purpose of the GLA group’s supplier diversity programme is to ‘level the playing field’, so that we offer under-represented businesses the same opportunities to compete for GLA group contracts as other qualified suppliers. Working with SMEs and other diverse businesses has brought us a number of benefits.

In the UK over 99 per cent of all businesses are SMEs, with the vast majority characterised as ‘smaller businesses’, employing fewer than 50 people. Interestingly, however, it is estimated that smaller businesses account for about 40 per cent of all business turnover and approximately 45 per cent of non-government employment.

Research from the Office of Government Commerce, Enterprise Directorate and Equality and Human Rights Commission has identified a number of competitive advantages that SMEs and diverse businesses can have over larger competitors:

• Increasing the diversity of potential suppliers can often increase competition and reduce the costs of procurement.

• SMEs usually have lower administrative overheads and management costs than larger firms and can share these lower costs with contracting organisations.

• SMEs have short management chains and approval routes, so they can respond quickly to changing needs.

• Being a large customer of a small business means that your business is important to the SME. This can result in a better and often a more personal level of service, creating a better relationship with the supplier.

4 The GLA group’s supplier diversity programme

25


• SMEs may be more willing and able to tailor a product or service to meet specific customer needs.

• SMEs can help bring innovation and higher quality specialist services through new technology or can provide products or services in new or underdeveloped markets.

As part of the supplier diversity programme the GLA group also ensures that the purchase of goods, works, services and facilities is undertaken in line with our equalities and diversity commitments, and wherever possible is from agencies or companies who share our values on equality of opportunity and diversity.

The supplier diversity programme has helped the procurement teams in each part of the GLA group to embed supplier diversity within their organisation’s procurement processes, by focusing on three key themes.

1 Policy and proceduresSupplier diversity has been a priority for the GLA group for a number of years and in 2005 we agreed a group statement of principles on supplier diversity. (See www.london.gov.uk/rp for further information). The implementation of the Responsible Procurement Policy builds on this commitment.

To put the policy into practice the GLA group has focused on developing procurement procedures, such as standard text for advertising contracts in the Official Journal of the European Union (OJEU), tender pre-qualification questionnaires (PQQs), contract specification terms and conditions, and management information about supplier diversity that gives a consistent message to suppliers.

These procurement procedures include requirements for large organisations to address supplier diversity in two ways: by opening up opportunities for SMEs as subcontractors; and by promoting equality and diversity practices themselves. These procedures have been piloted successfully in a number of GLA group projects, including TfL highway maintenance contracts and the TfL East London Line Project (see Case study 1).

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Case study 1 – The East London Line Project (ELLP)

The ELLP is being delivered in one of the most ethnically diverse areas of London and is the first major project to use GLA group responsible procurement requirements to encourage diverse suppliers.

These were incorporated in the invitation to tender (ITT) and contract conditions for two procurements within the project: the provision of main works (£500m) and the rolling stock and train servicing agreement (£350m). Both elements received a positive reaction from suppliers.

There was close and early engagement with the bidders, supported by TfL acting as a broker with community stakeholders, such as training institutions providing workers. This was seen as one of the key reasons for the positive response. In fact, ELLP best practice has been applied in the rollout of all subsequent supplier diversity initiatives.

In the summer of 2006, Bombardier was awarded the contract for the rolling stock and train services agreement; and in October 2006, a Balfour Beatty-Carillion Joint Venture (BB/C JV) was awarded the main works construction contract. Through a collaborative approach with TfL, the BB/C JV has established an employment and training taskforce to set up partnerships with local skills and regeneration programmes.

The initiative is monitoring the diversity of the project’s workforce, so its full benefits can be measured.

2 Monitoring our progressTo ensure we are making progress against our supplier diversity programme, the GLA group has agreed a standard format for the collection and reporting of supplier diversity statistics. This information is also being used for the programme’s development.

As part of tracking our progress the group collects information on how much money is spent with diverse suppliers. Information on the size and ownership of our suppliers is held within finance systems and is collected through direct surveys of suppliers. In total 8,000 suppliers have been surveyed and the group now holds diversity information on 2,600 suppliers. This information is regularly updated as suppliers register on group finance systems, or provides the information through PQQs as part of the tendering process.


The size of a company is assessed in terms of both its turnover and the number of employees. Diversity information is obtained from suppliers. For further details on monitoring criteria please visit: www.london.gov.uk/rp

Each member of the GLA group submits a quarterly return on its expenditure with diverse suppliers to the Responsible Procurement Steering Group. The financial year 2006/07 represented the first full year of monitoring and reporting on supplier diversity. The results are provided in the following charts:

GLA group total influencable spend14 in 2006/07 was £3.166 billion. Of this, £448 million (14.1 per cent) was spent with SMEs.

Chart 1 – Total and SME spend across the GLA group 2006/7.

Total spend SME spend SME spend as % of

total spend

MPA/MPS £850,000,000 £127,500,000 15%

LDA £572,619,247 £147,753,356 25.8%

GLA £30,381,007 £6,708,731 22 %

TfL £1,627,230,000 £151,823,000 9.3%

LFEPA £86,212,000 £14,817,000 17.2%

GLA Group Total £3,166,442,000 £448, 601,000 14.1%

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Functional Body

MPA/MPS LDA GLA TfL LFEPA

Ann

ual s

pend

(£0

00’s

)

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

£1,400,000

£1,600,000

£1,800,000

£0

Total spend

SME spend


29

Chart 2 – Spend by GLA group members with SMEs as a percentage of their total spend.

MPA/MPS LDA GLA TfL LFEPA

15%

26%22%

9%

17%

30%

25%

20%

15%

10%

5%

0%

Chart 3 – Representation of GLA group expenditure. In 2006/07 the group spent £448 million with SME suppliers with the following ownership.

67%Other *

0% LGBT

1% Disabled

27% Women

5% BAME

* ‘Other’ (SME suppliers) sometimes represents suppliers where there is a 50/50 ownership so no majority ownership is recorded. Future data collection will identify this group separately.


3 Forward planning and supplier engagement Many small and diverse organisations have difficulty learning about contract opportunities and understanding the public procurement process. To address this barrier, each member of the GLA group has published information widely on how it buys and advertises contract opportunities, through OJEU, its own website http://supply2.gov.uk, the government backed public sector contracts website, and appropriate local media.

Each member of the group also keeps a forward plan of major procurement activity, identifying large contracts that are due to be tendered over the coming 12 months. This enables each organisation to identify contracts where there is an opportunity to encourage participation from diverse suppliers.

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Case study 2 – Working with new suppliers

TfL held a ‘Meet the Buyer’ event at the Barbican on 18 October 2006, which included support from 35 of TfL’s tier one contractors and involvement from other GLA group members.

Eleven seminars took place and an ‘Innovation Zone’ was set up to give suppliers the opportunity to discuss ideas with TfL experts. The results were excellent:

• Six hundred and three potential suppliers attended the event, compared with 179 at the previous event in 2003.

• Twenty two per cent of suppliers attending were BAMEs, exceeding the target of 20 per cent, and the 2003 figure of seven per cent.

• Sixteen per cent of suppliers attending were majority-owned by women, compared with 14 per cent in 2003.

• Ninety seven per cent of both suppliers and clients said that they would attend again.

• Eighty six per cent of buyers said that they would definitely or probably be doing business with suppliers they met at the event.

• Eighty four per cent of attendees believed they would definitely or probably transact business with partners met on the day. Eighty one per cent of seminar attendees rated the seminar as meeting or exceeding expectations.


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To increase the transparency and accessibility of the procurement process, members of the group have also continued to attend ‘meet the buyer’ and ‘brokerage’ events (see case study 2). These events allow suppliers to meet procurement professionals from the GLA group and gain a greater understanding of the different procurement processes, the key success factors in bidding for our contracts, and any forthcoming contract opportunities.

The GLA group supporting businessThe GLA group has done a lot of work to make sure that procurement policies and procedures help to reduce barriers to SMEs and diverse businesses accessing contract opportunities. It is also important that we give appropriate support to these businesses to help them become ‘fit to compete’ for these opportunities.

The GLA group, through the LDA, has developed a number of business support programmes to improve the capacity of small and diverse suppliers and to provide guidance on the public sector procurement process. We focus in particular on support in addressing GLA group requirements.

The LDA programmes include an electronic brokerage service; known as CompeteFor, with an initial focus on Olympics contract opportunities, a Diversity Works for London campaign, the Business Link London service and a Supply London programme.

CompeteForThe CompeteFor project has developed a portal, currently accessed via the London2012.com ‘Business Centre’ page. This is to ensure the transparency and availability of London 2012 opportunities for suppliers, to maximise the number and diversity of businesses contributing to the London 2012 programme, and to create a legacy of increased capacity and expertise within UK businesses.

Key objectives of the project include:

• encouraging transparent and responsible procurement• providing a business network and brokerage service that develops

throughout the delivery of the 2012 programme and grows into the legacy


• helping the development of UK businesses by promoting links into business support services

• providing opportunities for buyers to access a wide and diverse network of businesses

• providing opportunities for businesses, especially SMEs and in particular diverse-owned SMEs, to compete for London 2012 supply contracts.

For more information please visit: www.competefor.com/london2012business/login.jsp

Lessons from this project are being applied to the development of GLA group procurement.

Diversity Works for London (DWfL)Diversity Works for London is the Mayor’s campaign through the LDA to promote the business case for diversity, particularly in London’s private sector. The programme helps businesses to be more diverse through their employees and their supply chains becoming more representative of the communities they serve.

The campaign’s key objectives are to:

• champion the business case for diversity• engage with and work in partnership with the private, public and

voluntary sectors in promoting equality• campaign for and enable businesses to reflect the capital’s diversity at

all levels of their workforces and supply chains.

Please visit www.diversityworksforlondon.com for information and tools to help businesses to increase their diversity.

Business Link LondonBusiness Link London (BLL) is the gateway to business support services for SMEs in the capital. It offers one-stop access to information, services and business support to people who want to start up, run or grow a business in London. Through CompeteFor, businesses will be pointed to relevant BLL advice to help improve their performance in winning contracts.

For more information please visit: www.bllondon.co.uk

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Supply LondonThe LDA’s Supply London initiative works with London’s diverse and small business community to increase their ability to supply major public and private sector organisations. This includes helping them develop the policies and procedures required by the public and private sectors, and working with them on business opportunities. So far, Supply London has:

• worked with over 2,000 small businesses – over 50 per cent of them diverse-owned/led

• helped 1,150 companies to reach a position where they can tender successfully

• submitted 870 tender pre-qualification questionnaires• directly helped its client organisations win £9 million of business.

Benefits to potential suppliers include:

• workshops and advice sessions• a comprehensive toolkit• one-to-one advice from experienced supply chain advisers on the PQQ

and the tendering process, and help in finding the right opportunities.

Comments from suppliers using Supply London:

• ‘When I opened the toolkit, I was pleasantly surprised to find straightforward and informative narrative.’ Carol Lewin, Matthew Mawson Photography

• Kully Dhadda from Flame Public Relations commented: ’Congratulations for a fabulous workshop! I have always been daunted

by the prospect of the bureaucracy involved. I came away feeling empowered and much more confident.’

• ‘Supply London’s support was vital. We have learnt a considerable amount. This will stand us in good stead for future tenders we go for.’ Yvonne Peeke-Vout, Director of View

• ‘Supply London increased our financial and business development knowledge which helped Rich Visions to grow.’ Mavis Amankwah, Director, Rich Visions International Supply Ltd

For more information on the Supply London programme please visit www.supplylondon.com


This section gives examples of how responsible procurement practices across the GLA group have helped achieve social objectives.

© visitlondonimages/


Supporting social objectives through procurement represents a major challenge. The following sections highlight the GLA group’s work in these important areas since the policy was established in 2006.

The London Living WageFollowing a pledge in his 2004 Mayoral election manifesto, the Mayor established a Living Wage Unit within GLA Economics15. Its remit was to look at the issue of a realistic living wage in London and to examine related poverty issues.

The unit publishes an annual figure for the London Living Wage (LLW), which takes account of the high costs of living in the capital, compared with other parts of the country. It also takes into account the threshold for ‘poverty level’ wages in London and a 15 per cent ‘safety margin’ to allow for unexpected costs. In April 2007 the Living Wage Unit set a living wage of £7.20 per hour.

The 2007 Living Wage report highlighted data from the Annual Population Survey for 2005, which suggested that around one in seven employees in London received less than poverty-level wages and almost one in four received less than the Living Wage.

The GLA group has worked to ensure that none of our direct employees is paid below the Living Wage. We are currently also including the London Living Wage in appropriate contracts. This will ensure that those working on behalf of the group receive a sustainable wage that encourages commitment and high quality work. (see Case study 3).

The benefits of paying the London Living Wage have been recognised by a number of private sector organisations, including KPMG, HSBC and Morgan Stanley in London, which are implementing similar terms with their suppliers.

In addition to the clear economic and social benefits for London, the payment of the Living Wage can also have a positive impact on value for money and the delivery of contracts. Feedback obtained from contractors who have implemented these London Living Wage provisions has identified benefits including:

• easier recruitment and retention, including reduced recruitment costs• higher quality staff• better attendance

5 The GLA group achieving social objectives through procurement

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• better productivity, motivation and loyalty• better quality of service.

In the past 12 months, TfL has implemented the London Living Wage in two cleaning contracts within TfL’s Surface Transport business unit. Through these contracts with TfL, 170 cleaners have benefited from the Living Wage. Similarly 190 cleaners at LFEPA have benefited from the Living Wage through the Provision of Cleaning Services Contract, awarded in June 2007.

Case study 3 – Catering and cleaning contracts

The GLA was the first organisation to introduce London Living Wage provisions into its catering and cleaning contracts at City Hall in 2005 and 2006.

As part of their tenders for these contracts, bidders were required to indicate whether they would accept a London Living Wage clause as part of the contract, including ensuring that other employment conditions were not reduced as a result of paying a living wage.

The successful tenderers, Jill Bartlett and Company (catering) and OCS Ltd (cleaning), accepted this clause and in total 30 employees are benefiting.

Full case studies with further information about these contracts, and on LLW implementation across the GLA group and in the private sector, can be found on the website www.london.gov.uk/rp

Strategic labour needsLondon is a world city with a highly successful economy. But not everyone who lives in the city is benefiting. London has an employment rate of less than 70 per cent, which is the lowest of any English region.

The scale of GLA group procurement activity means that we create a significant number of employment opportunities through both large capital projects and routine contracting. We also have an opportunity to work with key suppliers to provide both basic skills training and professional development within GLA group supply chains (see case study 4). We are developing pilot projects to ensure that London’s communities are able to take advantage of the employment and skills opportunities encouraged by our contracts, by linking employment opportunities to skills and training provision.

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Case study 4 – Planning for the future with Project Brunel

Transport for London is undertaking a pilot project to identify its future employment needs in the fields of engineering, technology and planning. TfL, along with a range of partners, is also taking a number of steps to help develop future engineers and planners. These include the following:

• Experience gained from projects like the East London Line is being used to develop new contractual processes and a toolkit to increase the employment and training opportunities available through TfL’s major projects to local communities.

• The London Development Agency is developing a ‘one-stop shop’ brokerage service that will allow TfL projects and suppliers easy access to training and employment programmes and connect them to community-based organisations that can ensure diverse communities access the opportunities.

• An education programme has been created in partnership with the London Transport Museum, the Royal Academy of Engineering and the Science, Technology, Engineering and Mathematics Networks (STEMNET). It includes a range of education packs and an ambassadorship programme in which TfL engineers promote the professions and the engineering industry within schools and colleges.

• University partnerships are being established to develop placement and sponsorship schemes and to look at how broader training and research opportunities might be linked into an integrated programme.

Other elements of this phase have included:

• a jointly funded study with the LDA and Department for Transport looking at the demand and supply factors in the engineering and planning professions within the transport sector

• a pilot scheme for the placement and sponsorship of graduates within TfL• a skills survey of the London boroughs to look at how boroughs,

London Councils and TfL can address resourcing issues together• a Suppliers’ Forum, which will look at common issues and opportunities

and how to benefit from them.


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‘Responsible procurement is a new and

exciting area of development that sees social,

environmental and economic issues addressed

by the procurement function.’

Valerie Todd, Managing Director, Group Services,

Transport for London

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Community benefitsThe GLA group is committed to maximising the benefits of our procurement activities to all Londoners including businesses, residents and workers. To achieve this we have worked with our suppliers to deliver specific community benefits (see Case study 5).

Case study 5 – Community benefits delivered by LFEPA

Over one tonne of fire hose and lines was delivered by LFEPA to Maidstone Borough Council’s scrap store for use by schools and community-based arts groups as a materials resource.

LFEPA is also working with a social enterprise organisation (Green-Works) on a comprehensive and fully audited disposal service for unwanted office furniture with a work experience programme for the long-term unemployed. End-of-use and damaged authority furniture is collected, sorted, cleaned, refurbished and then resold to charities, SMEs and similar users. The removal and collection costs are comparable with those of traditional removal firms.


This section looks at what the GLA group is doing to encourage environmentally sustainable practices in procurement.


The GLA group can make a significant positive contribution to promoting greater environmental sustainability across London and beyond. This section outlines some of the key procurement policies and initiatives we are implementing to help reduce the environmental impact of our activities.

Warming of the climate system is unequivocal. This is now evident from increases in average global air and ocean temperatures, widespread melting of snow and ice, and the rising global average sea level. The latest facts on climate change16 are that:

• eleven of the past 12 years (1995–2006) rank among the 12 warmest years in instrumented records of global surface temperatures (since 1850)

• the global average sea level has risen since 1961 at an average rate of 1.8mm per year – but since 1993 at an average rate of 3.1mm

• temperature changes will depend on how much CO2 is emitted, but

different scenarios see the increase by 2100 ranging from 0.3ºC to 6.4ºC.

The Mayor currently chairs the C40 climate leadership group, bringing together cities from around the world to address climate change. In his Climate Change Action Plan the Mayor has set a target of stabilising London and the UK’s carbon emissions at 60 per cent below 1990 levels by 2025.

Good management of our buildings is a key factor in reducing carbon emissions from our direct activities. Case study 6 gives an example of how responsible procurement is helping to reduce the GLA group’s environmental impact.

6 The GLA group promoting greater environmental sustainability through procurement

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Case study 6 – Environmental considerations in the MPS Facilities Management Services (FMS) contract

In April 2007, the MPS put in place a new Facilities Management Services (FMS) contract, which included a number of clauses specifically on environmental sustainability.

The contract requires the FMS suppliers to demonstrate best practice in environmentally sound facilities management and to help the MPS Environmental Strategy through:

• implementing an environmental management system for the services in the contract, in line with the requirements of ISO 14001

• considering the use of environmentally responsible building and cleaning products

• maintaining grounds sensitively in order to promote biodiversity and reduce environmental degradation

• integrating internal waste collection into the cleaning contract and providing training to MPS staff. This is the most innovative element of the contract and includes two targets for waste management:

- reduce waste generation by 25 per cent by 2010 - achieve a waste-recycling rate of 45 per cent by 2010.

Emma Devenish, MPS Head of Environment and Sustainability said: ‘One of the key aspects of the new FMS contract is to ensure that environmental sustainability is mainstreamed within all facilities management activities. This will also assist with the delivery of the MPS Environmental Strategy.’

Including waste management requirements in contracts is an important part of the GLA group’s work to help promote greater environmental sustainability through procurement. Case study 7 gives details of LFEPA’s work with a company who has found an innovative use for waste materials.

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Case study 7 – Brigade’s new ‘waste-line’

Following their success in winning the Most Innovative Organisation at the Mayor of London’s Green Procurement Code Awards in November 2005, LFEPA has continued to develop contacts with recycling industries, and is actively promoting the use of its waste fire hose for commercial reuse in innovative furniture, footwear and clothing accessory designs.

For example, end-of-life waste fire hose, produced by the London Fire Brigade (LFB), is being turned into waist belts: 500 were sold at the Live Earth event at Wembley Stadium in summer 2007.

A Bournemouth-based company, Bio-Supplies, which marketed them at the event, makes the belts and is giving half the proceeds to Fire Service charities. Other fire hose belts are available at the LFB online shop at: www.lfbshop.co.uk

The fire hose belts are part of a much wider strategy by the LFB to become greener and to retain its position nationally as a Fire Service leader in sustainability.

Environmental supplier, Bio-Supplies, is also currently developing a range of furniture made from the LFB’s redundant fire hose. The range will include chairs and furniture frames for beds and sofas.’

‘It is great news that we are finding useful and unique ways of reusing waste fire hose, which for years has just been sent to landfill.’ Val Shawcross, chair of LFEPA, which oversees London Fire Brigade

Recycling and finding a use for waste materials is just part of the work the GLA group has been doing on environmental procurement. The GLA group is also committed to buying recycled products through the Mayor of London’s Green Procurement Code.


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The Mayor of London’s Green Procurement CodeThe Mayor of London’s Green Procurement Code is a free support service for London-based organisations committed to reducing their environmental impact through responsible procurement.

The second phase of this code was launched in September 2007 and helps organisations to achieve progressive environmental targets, awarding them bronze, silver or gold status as a mark of their success.

The code provides practical advice and online resources to help embed green purchasing into all aspects of an organisation, including sourcing green products. It is supported by £3 million from the LDA and is delivered by London Remade. More information about the code can be found at: www.greenprocurementcode.co.uk

Organisations that have signed up to the code submit annual statistics to London Remade on their purchases of recycled products. In 2006/07 the GLA group had a combined spend of over £8m on recycled products, representing an increase of 8.7 per cent on the previous year. Product areas included furniture, paper and office stationery, IT consumables, publications and promotional materials, catering supplies and hygiene.

Across the group we saved 1,070 tonnes of paper, 1,155 tonnes of steel, 1.7 tonnes of fabric and 0.43 tonnes of plastic during 2006/07. The spending breakdown on recycled products across the GLA group is outlined below.


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Chart 5 – Value of recycled products purchased

£4,466,109

£215,377

£2,855,035

£147,044

£623,194

TfL

LFEPA

MPS

GLA

LDA

The group’s progress in environmental procurement has been recognised externally with LFEPA winning the overall award at the City of London Corporation’s Sustainable City Awards, and also the Sustainable Procurement category, in 2006. Furthermore, LFEPA was a short-listed finalist in the Sustainable Procurement category for the prestigious Government Opportunities Awards 2006.

The MPS was runner-up in the Sustainable Procurement category of the Sustainable Cities Awards of 2006, and was highly commended in the Extra Mile award in 2006, as part of the Mayor of London’s Green Procurement Code Awards.


Section 7 outlines the steps we have taken to address ethical sourcing in the GLA group’s procurement practices.

© Transport for London Image Service


Ethical Sourcing can be described as the responsibility a company has for the labour and human rights practices within its supply chain.

The impact of GLA group procurement activity extends far beyond London’s boundaries, with some contracts involving the purchase of goods or services from across the world, where the impact of a contract can be less directly visible. The GLA group Responsible Procurement Policy addresses ethical issues: the key focus is to uphold fundamental human rights, to protect workers and to act within the law.

Membership of Sedex (Suppliers Ethical Data Exchange) gives the GLA group improved visibility of information and therefore, greater ability to manage ethical impacts in key GLA group supply chains. Sedex is currently being piloted in TfL and will be rolled out across the GLA group during 2008.

Sedex is a secure, web-based system enabling companies to provide data on labour practices at the factories and facilities they use, and thereafter to make the data available to their customers. For more information on Sedex please go to: www.sedex.org.uk

Case study 8 illustrates other action taken to reduce negative ethical impacts of key products bought by some parts of the GLA group.

Case study 8 – Procurement of uniforms

In December 2006, London Underground (LUL) became the first public sector organisation to sign up to the Ethical Trading Initiative (ETI) for its supply chain providing uniforms to over 12,000 staff.

The first contract to include ethical sourcing requirements and the ETI Base Code as a part of the contract conditions began in June 2007.

LUL is required, as a member of the ETI to:

• submit an annual plan detailing how it will meet its membership obligations in terms of monitoring its suppliers

• submit an annual report detailing its findings from monitoring the supply chain in the previous year

• commit to joining any relevant ETI initiatives or activities regarding the supply of clothing garments.

The ETI Base Code will now be adopted and included in all future tenders and contracts relating to LUL uniform garments.

7 The GLA group’s ethical sourcing practices

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Responsible procurement is a work in progress within the GLA group. The final section of this report looks at the steps we plan to take in 2008 and beyond.

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The GLA group has made significant progress on implementing the Mayor’s Responsible Procurement Policy since its inception in March 2006. This report has demonstrated a commitment to this agenda, and an appetite across the group for delivering leading edge responsible procurement.

2008 will see us building upon our successes and moving towards being a world leader on responsible procurement so supporting the Mayor’s vision of London as a sustainable world city. This section details the key actions for the responsible procurement programme in 2008.

Working together• Develop responsible procurement procedures, tools and guidance for

use across the GLA group.• Work with the teams involved in the Mayor’s Delivering More

Together17 programme to identify opportunities to promote responsible procurement in collaborative ventures.

• Develop and roll out responsible procurement training across the GLA group.

• Initiate a pan-group supplier engagement programme with key GLA group suppliers, and London’s diverse business community.

• Continue to work closely with colleagues in the Olympic Delivery Authority (ODA) and London Organising Committee for the Olympic Games (LOCOG) to share good practice and ensure that procurement associated with the Games contributes towards a lasting positive legacy for London.

• Raise the profile of responsible procurement across the public and private sectors in London through sharing successes, experiences and lessons learnt in implementing it.

8 The next steps for responsible procurement

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‘I will continue to raise the profile of responsible

procurement across the public and private sectors in

London through sharing our successes, experiences

and lessons learnt, so that we make an increasing

contribution towards London becoming a fairer and

more environmentally sustainable city.’

Lee Jasper, Director of Equalities and Policing

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Continuing our supplier diversity programme• Continue our commitment to supplier diversity and strive to make

further progress in increasing the group’s annual expenditure with diverse suppliers.

• Establish a web-based focal point for finding out about how the GLA group procures and where to look for business opportunities, including contact details of key buying teams and information about likely business opportunities.

• Develop a set of standard questions and assessment methodology for GLA group PQQs, to ensure all suppliers get an equal chance to win our contracts, and continue effective monitoring of our spend with diverse suppliers.

Achieving social objectives • Continual rolling out of the London Living Wage in appropriate contracts. • Build on our legal work and early contracts to promote collective

representation and non-discrimination of employees who hold trade union membership.

• Identify contracts or categories where we can transfer our experience from the East London Line and Project Brunel on employment opportunities and skills through supply chains. We will also be working to continue joining up GLA group procurement with the LDA’s skills and employment programmes.

Promoting greater environmental sustainability and ethical sourcing • Evaluate the pilot of the Supplier Ethical Data Exchange (Sedex) with

key TfL supply chains and extend it across the GLA group. • Renew the group’s commitment to the Mayor of London’s new Green

Procurement Code and work with the LDA and London Remade to further promote its uptake and development across London.


BAME: black, Asian and minority ethnic

CRPT: Central Responsible Procurement Team

C40: 40 leading world cities tackling global warming and climate change

Disabled: a disabled person is someone who has an impairment, experiences externally imposed barriers and self-identifies as disabled

DWfL: Diversity Works for London

ELLP: East London Line Project

ETI: Ethical Trading Initiative

ITT: Invitation to tender

LGBT: Lesbian, gay, bisexual, trans-person

LLW: London Living Wage

LOCOG: London Organising Committee for the Olympic Games

Minority-led/diverse enterprise: a business which has a majority (51 per cent or more) ownership, or a majority of their senior management team, comprising individuals from black, Asian and minority ethnic groups, women, disabled people or LGBT

ODA: Olympic Delivery Authority

OJEU: the Official Journal of the European Union

PQQ: pre-qualification questionnaire

RPP: Responsible Procurement Policy

SEDEX: Supplier Ethical Data Exchange

SME: small or medium sized enterprise. The European Union definition declares an SME to be under 250 employees or turnover of less than 50 million euros, which covers around 95 per cent of all business in the UK

Glossary

52


Contact details and links to related websites

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Katherine Adams Head of Responsible Procurement GLA Group Central Responsible Procurement Team 3rd Floor Windsor House 42-50 Victoria Street London SW1H 0TL Tel 020 7126 3438 l Auto 63438 Fax 020 7126 4517 [email protected]

Matthew Galvin Responsible Procurement Policy & Projects Officer GLA Economic Development Team City Hall The Queens Walk More London London SE1 2AA Tel. 020 7983 4795 Fax. 020 7983 4241 [email protected]


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GLA group member websitesGreater London Authority – www.london.gov.uk/gla/tenders

London Development Agency – www.lda.gov.uk/server/show/ConWebDoc.316

London Fire and Emergency Protection Authority – www.london-fire.gov.uk/az/procurement.asp

Metropolitan Police Authority – www.mpa.gov.uk

Metropolitan Police Service – www.met.police.uk

Transport for London – www.tfl.gov.uk/businessandpartners/sellingtotfl/1331.aspx

Responsible procurement linksLondonMayor of London’s responsible procurement policy. www.london.gov.uk/rp

CompeteFor: www.competefor.com/london2012business/login.jsp

Diversity Works for London: www.diversityworksforlondon.com

Business Link London: www.bllondon.co.uk

Supply London: www.supplylondon.com

A Fairer London – London’s Living Wage, 3rd Annual report, GLA Economics. www.livingwageemployer.org.uk/files/a_fairer_london_2007apr.pdf

The Mayor of London’s Green Procurement Code: www.greenprocurementcode.co.uk

Supplier Ethical Data Exchange: www.sedex.org.uk

London Centre of Excellence, Sustainable Procurement Project. www.lcpe.gov.uk/sustainable

NationalProcuring the Future: The Sustainable Procurement Task Force. www.sustainable-development.gov.uk/government/task-forces/procurement/index.htm


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UK Government Sustainable Procurement Action Plan. www.sustainable-development.gov.uk/publications/pdf/SustainableProcurementActionPlan.pdf

Local Government Sustainable Procurement Strategy and Action Plan. www.idea.gov.uk/idk/core/page.do?pageId=5246448

OGC: Social issues in purchasing. www.ogc.gov.uk/sustainability_social_issues_in_purchasing.asp

OGC: Environmental issues in purchasing. www.ogc.gov.uk/sustainability_environment_.asp

Equality and procurement guides. www.equalityhumanrights.com/en/Pages/default.aspx

Sustainable Procurement Information Network: www.s-p-i-n.co.uk


References

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1 The Greater London Authority, the London Development Agency, Transport for London, the London Fire & Emergency Planning Authority, the Metropolitan Police Authority and the Metropolitan Police Service

2 The policy was originally titled ‘sustainable procurement’, but it became clear that this was often associated with only environmental issues. The policy has therefore been renamed ‘responsible procurement’ in line with the Mayor’s commitment to both social and environmental objectives in order to deliver true value for money in procurement across the GLA group.

3 Office for National Statistics 2006 MYE-2006

4 GLA Economics calculations based on data from the Office for National Statistics

5 GLA 2006 Round Ethnic Group Projections, GLA Data Management and Analysis Group (DMAG) Briefing 2007/14

6 Philip Baker and John Eversley (eds) “Multilingual Capital”, 2000.

7 Londoners and the Labour Market: key facts, DMAG Briefing 2007/18

8 Department for Trade and Industry 2005

9 London Annual Business Survey 2006.

10 Gay Business Association

11 Census Key Statistics Ethnicity, religion and country of birth, DMAG Briefing 2003/09

12 Child Poverty in London, DMAG Briefing 2007/09

13 These figures exclude emissions from aviation, which are not part of the CO

2 reductions obligated under the Kyoto Protocol and are not

routinely included in the UK government’s assessment of emissions.

14 The value of contracts, which could be potentially be awarded to SME’s - not the total spend of the Group. Excludes rent, rates, directly employed labour, non negotiable elements of telecoms and utilities

15 GLA Economics, funded by GLA, TfL and LDA provides authoritative and expert analysis of London’s economy.

16 Fourth report of the Intergovernmental Panel on Climate Change, www.ipcc.ch/ipccreports/ar4-syr.htm

17 The Delivering More Together programme focuses on promoting and communicating the Mayor’s vision for London and delivering efficiencies by working together across the GLA group.

City Hall The Queen’s Walk London SE1 2AA

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